STOCKWATCH: CATIC Shenzhen to try resistance at HK$0.7

CATIC Shenzhen Holdings Ltd  (0161) has recently been rebounding against the down-going trend, an obvious winner in the broad market. The attempt to try out HK$0.7 has, however, been met with resistance, indicating hindrance at this level. Recent charts reflect an increased turnover which is nevertheless insufficient to support further rebound. RSI has slowed down, denoting limitation. It is not unlikely that the stock may make another attempt to climb up but given the current market condition, the chance of a breakthrough is slight. The stock is expected to go through a stage of consolidation and short-term investors are recommended to take profit first. Resistance stance set at HK$0.7. 

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